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Based on individual longitudinal data, [the authors] examine the evolution of employment and earnings of post-[European Union] EU accession Eastern European labour immigrants to Norway for a period of up to eight years after entry. [The authors] find that the migrants were particularly vulnerable to the negative labour demand shock generated by the financial crisis. During the winter months of 2008/09, the fraction of immigrant men claiming unemployment insurance benefits rose from below two to 14 per cent. Some of this increase turned out to be persistent, and unemployment remained considerably higher among immigrants than natives even three years after the crisis. Although [the authors] find that negative labour demand shocks raise the probability of return migration, the majority of the labour migrants directly affected by the downturn stayed in Norway and claimed unemployment insurance benefits.

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